Binance is No Longer One of Top 10 Exchanges, Says CryptoCompare
- Binance presently ranks at the 12th position with CryptoCompare.
- Bitwise also offers the ranking of exchanges with “real” volume.
CryptoCompare, a data provider on cryptocurrency, recently updated the rankings of the many exchanges on the market, organizing them by traded volumes.
While Binance has consistently been one of the top 10 exchanges with this ranking, the data provider states that the exchange is no longer in that top level. The Block recently published an article to discuss the changed rankings.
The rankings were released on Tuesday, and the top ten cryptocurrency exchanges now include:
- Paxos’ itBit
The exchange ranking in June showed that Binance was at the 8th position, but the most recent data places him in the 12th place. The Block spoke with co-founder and CEO of CryptoCompare – Charles Hayter – who stated,
“Our new Benchmark includes a category for recent hacks for which we penalize exchange. As Binance was recently hacked, it is marked down in the security category.”
The hack that Binance recently experienced in May was the sixth-largest in history, resulting in a theft of 7,070 Bitcoin, which was worth about $41.2 million when the hack happened. The users of the Binance exchange weren’t directly affected since Binance used their emergency insurance fund (SAFU) to ensure that customers’ funds were covered.
Considering the many concerns over volume manipulation and the potential for wash trading, CryptoCompare stated that they don’t focus on aggregate volume data when analyzing the exchanges. Instead, it uses a few different quantitative and qualitative metrics.
Over 160 active spot exchanges are included in the updated rankings, though it only included about 100 exchanges when it originally launched. The current rankings also include a “Security” category and a “Negative Reports” category. The revision shows that only about 8% of exchanges store user assets with a custody provider, and only 4% of those exchanges protect their users from hacks with third-party insurance.
While discussing further details, Hayter stated that custody providers are offered by Bitstamp, itBit, Coinone, and Gemini. Third-party insurance is provided by Gemini and Independent Reserve, along with several others.
Jeanine Hightower-Sellitto, the managing director of operations at Gemini, spoke on the top ranking of Gemini, explaining, “Security has been a key Gemini pillar since inception and protecting our customers’ cryptocurrency is a priority as we build the future of money.”
Hayter stated that the new methodology and rankings ultimately took “thousands of research hours.” After all, across the 160 exchanges, the new data set includes “over 300 qualitative and quantitative metrics.”
Along with CryptoCompare, the crypto asset manager Bitwise also offers a ranking for exchanges, showing the top ten platforms that show “real volume.” Those top 10 exchanges include Binance among Bitwise’s rankings, along with Bitfinex, Kraken, Bitstamp, Coinbase, Bitflyer, Gemini, itBit, Bittrex, and Poloniex. Hayter states that the difference between CryptoCompare’s list and Bitwise’s list is that the latter “focuses on the BTC/USD and BTC/USDT (Tether) markets.”
A new metric called “Liquidity” was launched by CoinMarketCap, aiming to fight against fake trading volumes. However, Hayter pointed out that liquidity, on its own, is not a sufficient metric. He added, “We have always incorporated a liquidity metric in our scoring system for each exchange, using depth and spreads across top markets.”
Overall, there are about 35,000 daily active users (DAUs) on CryptoCompare, and the exchange rankings have already had 10,000 views on the new rankings, according to statements from Hayter to The Block. Comparatively, CoinMarketCap offered over 36 million visitors in the last six months alone.
Being involved in the exchange rankings doesn’t cost anything, but exchanges and other providers that want additional insight have the option of purchasing the custom research and underlying data separately.
While Hayter told The Block that CryptoCompare has already raised around $3.17 million in funding to date, he chose not to share the firm’s present revenue and valuation.
CryptoCompare offers a ranking of the cryptocurrency exchanges with the use of multiple different metrics. The platform recently changed their criteria, which resulted in Binance falling out of the top 10 rankings. Where do the exchanges rank now?